Design Linked Incentive Scheme

Design Linked Incentive Scheme Latest News

The Design Linked Incentive (DLI) Scheme is critical to anchoring India in the most strategic and value-intensive segment of the global semiconductor value chain—chip design. 

About Design Linked Incentive Scheme

• It is a key instrument in advancing India’s ambition to develop a strong fabless capability.
• It is implemented by the Ministry of Electronics and Information Technology (MeitY) under the Semicon India Programme.
• Aim: The scheme aims to reduce import dependence, strengthen supply chain resilience, and enhance domestic value addition.
• Eligibility:  Start-ups and MSMEs are eligible for financial incentives and design infrastructure support for semiconductor product design & deployment.
• Other domestic companies are eligible for financial incentives for deploying semiconductor designs.
• The DLI Scheme supports: Semiconductor design across the full lifecycle—from design and development to deployment—covering Integrated Circuits (ICs), chipsets, Systems-on-Chip (SoCs), systems and IP cores.
• Nodal Agency: C-DAC (Centre for Development of Advanced Computing).

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Financial Incentives and Design Infrastructure Support under DLI

• Product Design Linked Incentive
  • Reimbursement of up to 50% of eligible expenditure.
  • The reimbursement is capped at ₹15 crore per application.
  • The support is available to entities involved in semiconductor design for: Integrated Circuits (ICs) Chipsets Systems on Chips (SoCs) Systems & IP Cores Semiconductor-linked designs.
• Deployment Linked Incentive

• • Incentives of 6% to 4% of net sales turnover are provided for five years.
  • The incentive is capped at ₹30 crore per application.
  • The minimum cumulative net sales required over Years 1–5 is 1 crore for startups/ ₹ MSMEs and 5 crore for other domestic companies.

Source: PIB